How Much Money Do Smart Thermostats Save?

As they grow in popularity smart thermostats are offering consumers a cost-efficient method of heating and cooling their home.

It is estimated that by installing a smart thermostat and utilizing the programming with efficiency in mind, you can save up to 12% on your energy bill.

In order to save as much money as possible, you will have to understand how a smart thermostat works. Below I am going to cover what a smart thermostat is, and how installing one can save you up to 12% on your energy bill.

How Does a Smart Thermostat Save You Money?

A smart thermostat serves the same general purpose as traditional electronic and electro-mechanical thermostats. It communicates with your HVAC system to achieve the set temperature on the thermostat. It does this by triggering the furnace or air conditioning unit on or off.

The benefit to a smart thermostat is that it offers additional features that you won’t be able to find on older models. They’re also equipped with wi-fi connectivity so you can remotely program and adjust your home’s temperature from anywhere.

A smart thermostat’s main source of energy efficiency comes in the form of a programmable schedule that allows your heating and air conditioning units to remain off while nobody is home.

For example, if you leave at 8 A.M then your smart thermostat will shut your HVAC system down at that time. If you get home at 5 P.M., then your thermostat will enter what is called recovery mode a couple of hours before and begin to adjust the temperature so by the time you get home at 5 your home is right where you like it.

This won’t show drastic savings on energy bills immediately, so it’s important to remember you’re playing the long game here. You’re going to use a thermostat either way, so why not save $100-$150 annually by lowering your energy usage?

Is a Smart Programmable Thermostat Right For You?

Whether or not a smart thermostat is right for you depends on your habits and how much time you spend at home.

1. If you don’t leave, it doesn’t work.

The main way that smart programmable thermostats save you money is by not running when the house is empty. What this means is that if you are always home the smart thermostat never has a chance to shut off and help you save money.

There are additional benefits of having a smart thermostat, so even if it doesn’t save you that much money it can still simplify your day to day life.

2. Wi-Fi connectivity is key.

The only way to unlock the full potential of a smart thermostat is to connect it to the wireless internet in your smart home. If you do not have wi-fi in your home the thermostat will still serve its base function of adjusting the HVAC system to achieve your set temperature, but you won’t have the ability to remotely control your thermostat.

3. Is a smart thermostat right for you?

If you spend significant time away from your home every week then I highly recommend you invest in a smart thermostat. It can save you a substantial amount of money over the years which is something that could help us all out during these times of uncertainty.


A smart thermostat is a good investment for your home and will pay for itself in no time. If you spend time away from your home then I highly suggest you invest in a smart thermostat. They can save you up to 12% on your overall energy costs.